Government cracks down on credit card industry practices

[run2Jesus]

http://news.yahoo.com/s/ap/20080502/ap_on_bi_ge/credit_card_rules

[run2Jesus]

WASHINGTON - The Federal Reserve and other regulators are moving Friday to crack down on "unfair and deceptive" practices in the credit card industry that have added billions in debt to people already struggling to cope with the economic downturn.

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In the most far-reaching crackdown on the credit industry in decades, the Fed and two government agencies are proposing rules that would stop credit card companies from unfairly raising interest rates and make sure they give people enough time to pay their bills.

The banking industry is expected to fight the new rules.

Travis Plunkett, legislative director for the Consumer Federation of America, said that while he hadn't yet seen the details, the rules "appear to address some of the most significant abuses in the credit card marketplace right now."

Rep. Carolyn Maloney, D-N.Y., who has introduced legislation to protect consumers from credit card abuse, said in a statement that she was pleased the Fed had adopted some aspects of her legislation.

But she also expressed concern that "by the time the Fed gets around to finalizing these credit card reform proposals, they will be watered down and come too little too late for consumers who need relief now."

The Fed has been criticized for moving too slowly to respond to abuses leading to the subprime mortgage crisis.

The agencies
more at above link...

[lilbitsyspider]

I don't think the government should regulate this. For years people charged and charged some had cc debt so high it was equal to the price of a small home. Instead of paying it back they just claimed bankrupcy and kept it all. So they stole from the cc companies. Now with new regulations they can't get out of the debt and have to pay it.


I think people need to learn how to manage their finances better and avoid purchasing things on credit they can't afford and never really needed. Most of the time credit is used to pay for daily needs because the paycheck is already gone before they get paid. We need to learn self control.

[Amanda's mom]

Seems like there's lots of blame to go around. It's true that there have been many, but not a majority, of people who declared bankruptcy. That's why it became harder to declare bankruptcy a few years ago. But the credit card industry is not blameless. They pushed pre-approved applications at college kids who didn't even have a job. They used practices that made little sense business-wise. The latest injury that the some banks are handing out is to raise the interest rates on all customers, regardless of credit history, because of the banks' poor judgment of investing in derivatives. It's time that everyone got themselves under control. Unfortunately, this genie is out of the bottle and it will be virtually impossible to get it back in.

[felixthecat]

Are people too stupid, lazy or greedy to NOT read the fine print?

When are PEOPLE who get credit ever responsible for their actions?

WHY, oh WHY, is it always someone else's fault when they live beyond their means and get themselves into financial trouble?

BTW, I am not referrring to genuine, and I mean genuine hardshop situations. They I wonder why churches aren't involved in helping these folks out ??? Is it any wonder that folks often look to government as their god?

[Blessedhope777]

I pay my bills. . . I have had problems with one company. I got a zero percent card and paid the first payment almost ten days before it was due. Snail can't be that slow but they said I paid it late and change the interest rate. The joke was on them--I switched to another 0% (I get lots of offers with no fee for balance transfers) and they lost anyway!!!!!

[inhisglory2007]

BTW, I am not referrring to genuine, and I mean genuine hardshop situations. They I wonder why churches aren't involved in helping these folks out ??? Is it any wonder that folks often look to government as their god?

I have this problem with many 'christians' and especially with the 'institutional church' as a whole. Why? Because they see when a person is in a bad situation, financial, physical, etc. they believe it is a result of sin and, if not that, than it is from God to teach a lesson.
My situation is in the economic arena. I have debt, not CC but other debts that occurred due to employment problems in the past. Anyway, the teaching that was going on at my church at that time was that "if you got yourself into it, than you must get yourself out". Note the word YOU, not Jesus. The other teaching was that if you help someone who is need, you are interferring with God working in their life. So, do not help those in need like feed the poor, care for the sick, visit those in prison, why? Your interfering with God's work.
This is nothing more than Humanist Christianity. I stopped going to that church, which is the church I basically grew up in. Before I left I gave my pastor an explanation of what unbiblical teachings that were going on. He gave me a response that not even an atheist would say.
I went to a couple other churches in my area and they were ALL the same. Now, I do not go. With all the apostacy going on in the churches these days it's not worth going. So sad to. I really want a place where I can go and worship our Lord and Saviour and also have good christian fellowship, but there are none in the area that I live. The only place I have is here on RR.

rant off, back to the OP!!

In regards to the CC companies, people should pay back their debts if they have the means to do it. The Bible even commands to pay off your debts. I believe that God understands that if you cannot pay, especially if it is a result of genuine hardship, He will understand if you cannot pay it back.

[lilbitsyspider]

Are people too stupid, lazy or greedy to NOT read the fine print?

When are PEOPLE who get credit ever responsible for their actions?

WHY, oh WHY, is it always someone else's fault when they live beyond their means and get themselves into financial trouble?

BTW, I am not referrring to genuine, and I mean genuine hardshop situations. They I wonder why churches aren't involved in helping these folks out ??? Is it any wonder that folks often look to government as their god?

Our chuch does exactly that! If a family is in crisis for job loss or health issues the chuch family steps with mortgage payments, utilities bills, food you name it we do it. You tell us the need and we all want to help. It can happen to anyone at anytime. One of brothers and his family had a job loss for over 6 months and the church family gather around them and lift them in their time in need for over 6 months. Until they could get back into the swing of things. We should take care of our brother and sisters and take pleasure in serving GOD. But there are lots of church families who are not able to do so, or they don't have the spirit to help. It's a challenge to us and it's difficult for me to relate too. :hat

[lilbitsyspider]

Seems like there's lots of blame to go around. It's true that there have been many, but not a majority, of people who declared bankruptcy. That's why it became harder to declare bankruptcy a few years ago. But the credit card industry is not blameless. They pushed pre-approved applications at college kids who didn't even have a job. They used practices that made little sense business-wise. The latest injury that the some banks are handing out is to raise the interest rates on all customers, regardless of credit history, because of the banks' poor judgment of investing in derivatives. It's time that everyone got themselves under control. Unfortunately, this genie is out of the bottle and it will be virtually impossible to get it back in.

I humbly disagree. Look I went to college just 5 years ago. If you think 25% interest is good for a free t-shirt you don't even need, so be it. I cannot help if the person (s) applying for the credit card wants free money to buy non-essentials and live high off the hog. This is a problem because here in America we are not taught from childhood to be good stewards of money and to save. We're taught I want that, I'll go get it. I'll figure out how to pay for it later.:ohno

The gimmicks to get people to sign on the line is what get's them. They know before they get the cc they can't afford it. Though they think they are free they have become an "indentured servants" and they will spend their lives trying to payback this debt.

[Eternally]

I don't think the government should regulate this. For years people charged and charged some had cc debt so high it was equal to the price of a small home. Instead of paying it back they just claimed bankrupcy and kept it all. So they stole from the cc companies. Now with new regulations they can't get out of the debt and have to pay it.


I think people need to learn how to manage their finances better and avoid purchasing things on credit they can't afford and never really needed. Most of the time credit is used to pay for daily needs because the paycheck is already gone before they get paid. We need to learn self control.


And when your car breaks down, or your heat pump breaks down, or your mom, who lives on SS needs tires to pass inspection, etc, what do you do? :rolleyes

Also, Credit card companies are increasing the interest rate when the customer has always paid on time, never missed a payment, etc.

So why is this the carholder's fault? :scratch